# \[ARFC\] - Chaos Labs Supply and Borrow Cap Updates - Aave V3 Polygon - 2023.03.16 **URL:** \ **Category:** Risk\ **Created:** [March 16, 2023, 5:55pm UTC](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-2023-03-16/12310 "2023-03-16T17:55:25Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [March 16, 2023, 5:55pm UTC](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-2023-03-16/12310/1 "2023-03-16T17:55:25Z")
## Simple Summary This ARFC proposes to increase the MAI (mimatic) supply cap to 2.2M and the borrow cap to 1.2M on Aave V3 Polygon. ## Motivation MAI is currently at ~80% utilization of its supply cap and ~85% utilization of its borrow cap on Aave V3 Polygon. Given the on-chain liquidity levels and the current conservative caps set, we recommend doubling the supply and borrow cap. The proposal represents a near 100% increase from the current caps, making this ARFC compliant with the “direct-to-AIP” framework. ![Screen Shot 2023-03-16 at 1.41.05 PM](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/d/d0da5b7931b840019af82f4eba38f8d828050f2d.png) * * * ## Additional Assets **We want to flag that the following assets are at \>75% of their supply or borrow cap. However, we do not recommend increasing these caps at this time due to current liquidity levels:** 1. GHST 2. SUSHI 3. BAL 4. EURS 5. LINK # **Specification** Ticker: MAI (mimatic) Contract Address: 0xa3Fa99A148fA48D14Ed51d610c367C61876997F1 | Parameter | Current | Proposed | | --- | --- | --- | | Supply Cap | 1.1M | 2.2M | | Borrow Cap Cap | 600K | 1.2M | ---
**Author:** ![Llamaxyz](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/llamaxyz/32/2044_2.png) [@Llamaxyz](https://governance.aave.com/u/Llamaxyz)\ **Post date:** [March 16, 2023, 7:29pm UTC](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-2023-03-16/12310/2 "2023-03-16T19:29:12Z")
Hi @ChaosLabs The CRV proposal went live yesterday on Polygon v3 and the Supply Cap is at 100% utilisation within 24hours. ![Screenshot 2023-03-16 at 19.18.38](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/8/86857f5e070b15d0b12d82aed1132ab190f21ad8.png) The stMATIC Supply Cap was recently increased, a couple of days ago, and during this time the utilisation has increased from 50% to 70% without incentives. LDO rewards are expected to start imminently. If it is possible to increase this cap ahead of the LDO rewards distribution starting, can we do so ? ![Screenshot 2023-03-16 at 19.20.55](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/6/6d7b41e286e293792eaead8ca9ebca608a2f41d4.png) If we can not increase the stMATIC Supply Cap just now and the utilisation continues to increase, then this will discourage LDO incentives from being distributed across the stMATIC reserve and without sufficient deposit capacity, it will likely become a blocker to starting the LDO reward distribution. Given the time it takes to implement an AIP on Polygon, it is best to be early and proactive with this particular change. ---
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [March 17, 2023, 1:09pm UTC](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-2023-03-16/12310/3 "2023-03-17T13:09:22Z")
thanks @Llamaxyz. We do not recommend increasing the supply cap for CRV in this proposal due to its low on-chain liquidity. We will analyze further and share recommendations outside the “direct to AIP” proposal here. Regarding stMATIC, to be proactive and given on-chain liquidity and a total circulating supply of ~45M alongside the redeemability of the token, we recommend doubling the **current supply** and setting a new supply cap at 21M. ![Screen Shot 2023-03-17 at 9.07.51 AM](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/3/324daf8797bce0895e40ebc7416bab65383161cd.png) To summarize, we recommend the following changes to supply/borrow caps on V3 Polygon: | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | | --- | --- | --- | --- | --- | | MAI | 1,100,000 | 2,200,000 | 600,000 | 1,200,000 | | stMATIC | 15,000,000 | 21,000,000 | N/A | N/A | ---
**Author:** ![seawolf](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/seawolf/32/3490_2.png) [@seawolf](https://governance.aave.com/u/seawolf)\ **Post date:** [March 17, 2023, 10:06pm UTC](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-2023-03-16/12310/4 "2023-03-17T22:06:08Z")
Here are Gauntlet’s Conservative and Aggressive recommendations for stMATIC via our [Methodology](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487). If the community believes it is a strategic asset, they may adopt our Aggressive calculation. | Symbol | Current Supply Cap | Conservative Cap | Aggressive Cap | Chaos Rec | | --- | --- | --- | --- | --- | | stMATIC | 15,000,000 | 13,538,000 | 22,563,000 | 21,000,000 | ---
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [March 20, 2023, 3:35pm UTC](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-2023-03-16/12310/5 "2023-03-20T15:35:15Z")
We have published [AIP-186](https://app.aave.com/governance/proposal/?proposalId=186) for community members to vote on, starting in 24h. Thank you in advance for your participation in the vote. > **[Aave - Open Source Liquidity Protocol](https://app.aave.com/governance/proposal/?proposalId=186)** > > Aave is an Open Source Protocol to create Non-Custodial Liquidity Markets to earn interest on supplying and borrowing assets with a variable or stable interest rate. The protocol is designed for easy integration into your products and services.